Korea and ASEAN had experienced a rapid growth of bilateral trade and foreign direct investment(FDI) flows before the advent of Asian financial crisis. This paper intends to explore trade and FDI relations between Korea and ASEAN during 1988~1995. Several descriptive analyses show that Korea`s FDI on ASEAN was positively related with its exports to ASEAN as a whole. Industry-level study also reveals that a positive relationship of trade and FDI between Korea and ASEAN in major manufacturing sector can be found. From the analysis, it is emphasized that trade and FDI between Korea and ASEAN had a complementary relationship, and Korea`s FDI on ASEAN should be focusing more on production for local consumption expecting a larger and more integrated ASEAN market.